Seeking European Funding and not fail in the attempt

It all seems so obvious and simple when the press mentions project names and the millions each has received, but how much work and how many attempts are behind that success?

Europe is committed to connectivity—among the 27 countries of the Union—and is also focused on sustainability and digital transformation. But what does this really mean? It means investing in infrastructure improvements, striving for a more and better-connected Europe, supporting social cohesion, reducing CO2 emissions, promoting intermodality, ensuring interoperability, pushing for the digitalisation of systems, and advocating for cities with more public transport.

One of the most important funding mechanisms for the transport sector is the CEF (Connecting Europe Facility) fund. Currently, the Multiannual Financial Framework 2021-2027 allocates €25.8 billion for transport projects or initiatives.

Whether a company is public or private, the goal is to secure a portion of this funding for their projects, and that’s where the race begins. It’s here that companies enter the world of grants and subsidies.

For each applicant, their project is one of the best and most deserving of approval, as it is fully justified both technically and economically. However, the reality is different—there simply isn’t enough money for all the projects submitted each year. As a result, projects are selected based on a variety of factors.

One of these factors, which may not seem obvious but is crucial, is project maturity. When we talk about maturity, it can be surprising because, mistakenly, one might think that financial support is needed to bring the project to maturity. In reality, the project needs to be mature in order to ensure successful completion and to deliver its benefits. These benefits extend to communities, regions, countries, and ultimately to all the people who stand to gain from it.

This requirement exists because European institutions have learned from experience: funding immature projects comes with a high risk of failure.

Failure can occur if companies lack sufficient resources to complete the co-financing, if they haven’t initiated procurement processes, haven’t contracted the necessary services, or if they’ve barely started implementing the solution.

Another key factor is social impact—how many communities are affected, and how many people’s lives are improved.

Cross-border projects, those that connect European nations or enable access to goods of interest to Europe, are also given significant importance. In this regard, central European countries, with multiple borders, have an advantage.

This is a long-term race, where the goal is for each project to have a significant impact and add value to as many people, regions, or countries as possible.

To reach this stage, investment is needed, and the project must be developed with the assurance that it could proceed even without funding. It seems paradoxical, but it’s true.

If a company has the financial capacity and has already committed to purchases—sometimes even awarding subcontracts—it is more likely to receive funding than if no procurement or contractual processes with suppliers or subcontractors have been initiated.

In this, the instrument, rewards those who are well-prepared and autonomous.

This includes having maturity, a clear social impact, alignment with objectives, greater sustainability, interconnectivity, and digitalisation.

Original article in Spanish

Thanks to El Español the magazine, and its economical section Invertia, for publishing this opinion column.

Original text written by Joudia BOUJDAINI, the CEO of IRB and Vice-president of the Spanish Association of Transport AET.